New York Firm To Swap I-Grade For High-Yield

  • 27 May 2001
Email a colleague
Request a PDF

Rullison & Co. will rotate 10% of its portfolio from investment grade into high-yield corporate bonds over the next six weeks, says Christopher Hayes, portfolio manager with the asset management firm in Rochester, N.Y. The manager--who favors a value investing style--believes a lot of high-yield paper has suffered due to the telecom crisis, adding to the spread-widening between investment-grade and junk bonds, and creating a lot of good buying opportunities in the lower credit range.

Hayes says he owns and intends to buy more Sea Containers Ltd. (Ba3/BB-) bonds: the 9.50%s of '03, 10.50%s of '03 and the 12.50%s of '04. He also plans on continuing his play in Xerox Corp (Ba1/BBB), via the 8.12%s of '02. In the power production end, he is looking at rotating into the 6.50% Southern California Edison notes of '01(Caa2/CC).

Hayes manages a $135 million portfolio whose asset allocation is 70% corporates, 25% treasuries and 5% in cash. He does not follow a specific benchmark but indicates that his portfolio's average duration ranges between 1.5-2.0 years.

  • 27 May 2001

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 315,565.94 1183 8.89%
2 JPMorgan 288,650.70 1316 8.13%
3 Bank of America Merrill Lynch 284,218.69 988 8.01%
4 Goldman Sachs 215,758.12 710 6.08%
5 Barclays 207,555.74 805 5.85%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 32,400.29 147 6.76%
2 Deutsche Bank 32,042.83 103 6.69%
3 Bank of America Merrill Lynch 28,820.43 84 6.02%
4 BNP Paribas 25,608.74 143 5.35%
5 Credit Agricole CIB 22,617.86 130 4.72%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 18,067.92 70 9.12%
2 Morgan Stanley 15,215.44 76 7.68%
3 UBS 14,195.29 55 7.17%
4 Citi 14,014.57 86 7.07%
5 Goldman Sachs 12,113.98 67 6.11%